This is a gripe I wrote about a couple of months ago, but it is an issue that has raised it’s head again today.
We have spoke to a customer where we are due to fit a new front door at the back end of the week. However, after calling the customer, they explained they wouldn’t be around at the end of the week to pay as they were on holiday and might be back early next week – when they would pay the final balance. Now is it just me, or is it rude when you know you are having work done and you have a final bill to pay, to not have the funds available when the balance is due?
I know I wouldn’t go sign up for a new car, drive the car away but not have the deposit money ready to hand over. That would be rude. But for whatever reason, I am noticing that customers more and more often are becoming a bit clever about not being available when that final balance is due. This, from speaking with others online, is a story not uncommon, and I think we do have to start getting more rigid with fiscal policies.
For example, most of us take a deposit when we sign the client up. This practise is fine and most consumers expect to pay a deposit of some sort. What we need to do is get it into people’s minds that paying the final balance on the last day of an installation is just as important as it is paying the deposit. They shouldn’t be on holiday without us knowing about it. They must have the funds available ready for when the job is complete. Too many times I’ve had customers tell me that they’re waiting on shares or dividends and that it would be a few weeks before they could pay us! No point telling us now!
As far as I’m concerned, when customers avoid paying, they know exactly what they’re doing. These scenarios don’t happen by accident. We have to be a lot stronger at the point of signing and explain that once the contracted work is complete, then the balance must be paid. Not the day or week after, but on that final day. If there is a problem that needs resolving by all means withhold 5%, but then the rest must be paid. I personally don’t see anything wrong with that.
I don’t buy into this ethos about letting the customer have a few days grace before paying. All professional companies should have done a good job in the first place so shouldn’t need to give the customer a bit of time. Cash flow is important to many of our industry’s small businesses, including the one I work for. Especially when the environment is as competitive as it is.
The customer has a lot of rights already, I don’t think I’m being unreasonable when I say we want to be paid on time.
Completely agree, we have had it several times and most recently only a few weeks ago when a sister and brother were improving their property, arranged fitting dates (With the sister) all fine, our fitters turn up, do a superb job, we arrive and ask for settlement of the account (now with the brother), only to be told that the sister is away for a week and she will pay upon her return. For us, this is not a problem, but it should not be happening, I genuinely think customers to take the p*** sometimes and still have the opinion… Read more »
I guess my first question is how can you fit the door if they are away on holiday? I’d defer the installation on the basis that you need the householder and bill payer to be there to give their approval to the installation on completion, to be able to be shown how the locking system works, how to maintain anything that may require it etc. And offer to work around their availability, within reason to ensure that they are there. Their attempts to avoid being there ought to ring alarm bells for you – it may be they will pay… Read more »
Hi Greg
In this scenario the door is being fitted at their rented property. The tenants will be in, but the landlords, also previous customers, won’t be. Though they failed to point out that they would be away when we agreed a fitting date.
DGB
I suppose it’s another of those learning curve experiences… :-) When fitting to rented properties, check the person paying the bill will be there to sign off on the job. Do you get them to sign a Satisfaction Note post installation? That’s the point at which they should then pay the balance. If it was my rental property, I’d not leave it to the tenants to decide if the job had been done well enough or not. I’d want to be there myself – in this instance maybe they thought they’d just go round on their return from holiday to… Read more »
Yes – it’s tricky and we too have noticed customer reluctance to pay. You certainly wouldn’t go into a shop, stack up your goods and then say I’ll pop back at the end of the month when I get paid to settle up. We used to offer a 7 day (net) grace period following installation but have found over the last few months that people are going beyond that. In once instance it took 6 weeks to get payment from a customer (not a huge amount but it was the principle) and it was only when I personally went round… Read more »
Hi Sharon
We were going to alter the end of our quotes to be more firm about paying the final balance, but we might have to “borrow” your idea about send a full separate letter about paying the final balance ;-)
Unfortunately companies are having to go to these lengths because customers over time have carried on abusing the good will of double glazing companies to the point where patience has finally given in.
Thanks for your comment!
DGB
You are right!…and rather than reinvent the wheel I am happy to send you our payment method page for use. There is nothing proprietary about it and you can adapt it to suit your needs. Just let me know how to send it to you.
That is very kind of your Sharon! Would you be able to send it to info@doubleglazingblogger.com :-)
We have to make sure we start to nip this tactic in the bud from the start!
DGB
George, get the fiddle out!
Isn’t that the exact same thing many double glazing firms do to their own glass (and other) suppliers! It’s like running a high street bank, but without any interest payments, deposits and certainly no big bonuses! And that’s after 30+ days free credit. Talk to any supplier in the industry, and it’s far worse getting paid than at the domestic end.